Clover Health Investments Corp (CLOV)

[Corundum]

No Short Squeeze Possible -- Reason 1

"As of January 7, 2021, we [Clover] had warrants to purchase an aggregate of approximately 38,533,271 shares of our Class A common stock outstanding.These warrants will become exercisable at any time commencing on April 24, 2021, and the warrants will expire at 5:00 p.m., New York City time, on January 7, 2026, which is the fifth anniversary of the Closing, or earlier upon redemption or liquidation. The exercise price of these warrants is $11.50 per share. To the extent such warrants are exercised, additional shares of Class A common stock will be issued, which will result in dilution to the then-existing holders of Class A common stock and increase the number of shares eligible for resale in the public market."

It is very likely that the "short interest" in this stock identified previously is actually owned by the holders of the warrants. If the stock stays above $11.50 they can convert and use this newly created stock to cover their shorts. They never have to buy a single share to cover. No squeeze.

When the stock falls back below $11.50, they don't have to convert -- they can simply buy the stock cheap (below $11.50) to cover, assuming they shorted previously at a price above $11.50 (which they did). So they can continue doing this forever. Find some sheep to fleece and rinse and repeat. Yes, some day the company may actually make some money and really be worth more than $11.50 on a consistent basis. Good luck with that.